Some Enphase Energy, Inc. (NASDAQ:ENPH) shareholders may be a little concerned to see that the Lead Independent Director, Steven Gomo, recently sold a substantial US$5.2m worth of stock at a price of US$163 per share. That's a big disposal, and it decreased their holding size by 45%, which is notable but not too bad.
Enphase Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President, Badrinarayanan Kothandaraman, sold US$13m worth of shares at a price of US$177 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$148. So it may not tell us anything about how insiders feel about the current share price.
Enphase Energy insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Enphase Energy Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Enphase Energy insiders own 2.1% of the company, currently worth about US$410m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Enphase Energy Tell Us?
An insider hasn't bought Enphase Energy stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Enphase Energy is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for Enphase Energy you should be aware of.
But note: Enphase Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.